Established Contributor
cashnocredit
Posts: 1,012
Registered: ‎07-18-2009
Re: Negative affects of adding an AU?

DVH1980 wrote:

Thanks for the reply, I assumed as much but thought I would ask. I wasnt worried about my credit or eport as much as I was about how Amex might veiw it by adding someone with a slew of derogs on their report.


Amex is rather unique in that they check an AU's (aka AC) credit. Amex has, primarily, a spend centric, pif, customer base that is exceptionally large and long. Most other AU issuers just issue a new card with the same account number. When the card is used they have no idea whether it was the AU or primary. Amex OTOH, knows. I think it is a certainty that IF there is a correlation between the account risk and the credit profile/spending of AUs that it will be factored into their decisions. It's also a certainty that if Amex does this they will not disclose it if they can avoid it.  If AU's spending becomes a large part of the overall spend and if the AU's cr's deteriorate it's increasingly likely AMex will do a FR or place a hard limit if not cancel outright.

What is clear is that it doesn't impact the primary card holder's CRA credit files in any way.

 

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k